GUIDANCE – MANAGEMENT OF GUARANTEED HOURS CONTRACTS
It is important that managers are aware of the principles and key features of Guaranteed Hours (GH) contracts.
GH contracts are contracts where an employee is guaranteed to be offered a stated minimum number of hours of work in a defined period of time – the
Guaranteed Hours Period. GH contracts are typically appropriate where work is not evenly spread e.g. there are weeks or months where no work is offered;
where the total hours to be offered cannot be reasonably predicted; and the number of hours worked is likely to vary in each GH period. These contracts
are managed in three main ways:
1) The minimum guaranteed hours to be offered are stated for the GH period. At the end of the GH period the revised minimum number of GH hours
are stated in writing for the next GH period.
2) The minimum guaranteed hours to be offered are stated for the GH period. There is a review at the end of each GH period and only if the minimum
number of guaranteed hours to be offered has changed will the employee be notified in writing.
3) The minimum guaranteed hours to be offered are stated for the GH period. The GH period is the same as the duration of the fixed-term contract,
therefore no review is applicable as the contract ends.
The Guaranteed Hours Period is typically an academic year or a calendar year or matches the length of a fixed-term contract but may be for a different
period of time. The dates of the Guaranteed Hours Period are stated in the contract of employment.
Key Features:
4) GH contracts provide greater flexibility for both the employer and employee than some other forms of contracts. The employer is obliged to offer
the stated minimum hours of work in the GH Period – the employee is not obligated to accept the offer of work. However, once the employee has
agreed to work at a specified time or to a schedule of work then the employee is obligated to carry out that work.
5) The employer can vary the minimum amount of hours to be offered in each GH period to fit the amount of work known to be available at the
beginning of the GH period. Managers must generally offer the minimum amount of hours specified within each GH period.
6) The minimum guaranteed hours specified should be based on a reasonable estimate of the hours the manager expects to be able to offer in the GH
period.
7) Employees on GH contracts are entitled to equivalent treatment to employees on other types of contracts e.g. entitlement to occupational sick pay,
occupational maternity pay and leave.
8) Annual leave is paid as an extra % allowance on top of the hourly rate, as typically there will be weeks where no work is offered. Managers must
ensure that employees do not work more than 46 weeks’ of the year (over all GH contracts held) to ensure appropriate periods of annual leave/rest
can be taken.
9) The actual hours offered can exceed the minimum amount of hours offered in each GH period, however, if the minimum GH hours are not offered
in the GH period then the employee may be entitled to payment. There is no entitlement to payment where the employee declines to work the
offered hours.
10) In comparison to other types of contracts a greater amount of administration is required for both employer and employee. The GH contract should
be reviewed periodically to ensure that the type of contract remains appropriate.
Summary of Managers Obligations
1. Each College or Support Group will define the GH period or GH periods used in each area.
2. Managers must plan in advance of the end of each GH period/beginning of new GH period and ensure that each employee’s minimum guaranteed
hours are confirmed as far in advance as possible of the start of the new GH period.
3. Managers must keep track of the minimum GH hours to be offered to each employee in each GH period and as far as possible ensure that the
stated guaranteed hours of work are offered to each employee.
4. Managers must keep records to explain negative variations between contracted guaranteed hours and actual hours worked e.g. an email from an
employee advising that they are unable to accept work that has been offered or an email from the manager confirming that the employee has
declined hours offered.
5. An employee cannot normally remain on the University payroll without any allocated hours for a full Guaranteed Hours Period unless there are
acceptable reasons e.g. period of maternity leave.
6. Managers offer work on behalf of the University of Edinburgh and therefore should ensure that work offered is grade appropriate and complies with
University regulations.
7. Management of GH employees is required as would be appropriate for any other employee e.g. probationary period, capability management and
feedback on performance.
The following table provides a number of typical situations that may occur in relation to employees on guaranteed hours contracts and how a manager
should typically manage the situation:
Situation
Responsibility of Managers
A Guaranteed Hours employee advises
that they are not available for all of the
next GH period.
The manager needs to understand why the employee is unavailable.
If the employee advises they have accepted other employment, either within the University or
elsewhere, and this employment is full-time or substantial to the extent that they will be unavailable for
work under their guaranteed hours contract for the full GH period and/or beyond then this would
effectively be considered a resignation. Similarly if the employee is not available because they wish to
focus on their studies this would also be considered as a resignation. It is not normally possible for a GH
contract to be retained with zero hours allocated for the entire GH period. The manager may ask the
employee to contact them if the employee anticipates being interested/available in work in the future
but should not commit to further re-employment.
If the employee is unable to work for reasons covered by University policies (e.g. sickness absence,
maternity leave) the manager or employee should advise their local College or Support Group HR team in
order that the correct procedures can be followed. Where an employee on a Student Experience
contract temporarily interrupts their studies for a period of 3 months or more the local College or
Support Group HR team should be contacted as the associated employment contract may be suspended.
The manager does not intend to offer
work to the employee for a further GH
period.
The manager should contact their local administrator of GH contracts or local College or Support Group
HR team to explain the reason why they do not intend to offer further work. If it is known that the work
will cease or will diminish then there may be a potential redundancy situation.
Depending on the reason, the manager may be obligated to offer a further period of guaranteed hours if
e.g. there is work still available, there were performance issues but the manager has not formally
addressed these.
Managers should ensure they prioritise allocation of work to existing GH employees before recruiting any
new employees.
An employee advises that they are
available for the period of guaranteed
hours but does not accept all hours
offered and therefore total hours
worked are less than guaranteed hours
stated for the period.
Managers must confirm to their local administrator of GH contracts by the end of the GH period that the
employee has declined a specified number of hours offered to them. Where possible the manager
should keep a paper record e.g. email between manager and employee or note of the details of the
verbal conversation.
A manager offers some but not all of the The employee is entitled to be offered all of the guaranteed hours stated for the period. Where not
guaranteed hours for the defined period. offered the employee will normally be entitled to payment for the balance of hours not offered at the
end of the GH period.
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An employee advises that they are
unwell and cannot work the scheduled
hours.
The manager and employee should treat this as normal sickness absence. Subject to normal reporting
procedures being followed and entitlement to occupational sick pay (based on qualifying service1) the
employee would normally be paid as if the hours had been worked.
A manager knows that they have a
requirement for cover e.g. teaching
cover, for a limited period of time.
A manager should request a fixed-term contract rather than an open-ended contract. Depending on the
pattern and total estimated hours a guaranteed hours contract may be the most appropriate form of
contract. Hours can be guaranteed either for the duration of the contract or for the initial defined period
within the term of the contract e.g. per academic year.
An employee wishes to undertake work
at a date which differs to that originally
agreed.
Where a GH or part-time employee wishes to work at a different time to that originally agreed or swap
shift or work activity with another employee this should be agreed with the manager or person
responsible for organisation of work. The administration for payment purposes, should reflect any
agreed changes to work arrangements if necessary.
Entitlement to Occupational Sick Pay is contained within the Conditions of Employment.
A manager offers guaranteed hours but
it becomes apparent that due to specific
circumstances the employee will not be
required.
The manager should contact their local administrator of GH contracts /local College or Support Group HR
team. If the GH contract is fixed term to provide cover then it may be possible to end the contract earlier
with appropriate notice. If the contract is open-ended then there may be a redundancy situation
depending on the circumstances.
A manager wishes to offer a current UoE
student work that is related to their
engagement as a student e.g.
employment as a Student Ambassador,
employment as a Tutor.
The contract will usually be offered for a fixed-term duration no longer than the period of time the
student is expected to be a matriculated student. Managers must not offer work beyond the period of
study to ensure that work is available for future students. See guidance on Student Experience
contracts:
Policy on the Use of Fixed Term Contracts
If the offer of work is unrelated to status as a current University of Edinburgh student then a Student
Experience contract would not be appropriate e.g. employment as a Cleaner.
A manager wishes to extend a Student
Experience contract beyond the date the
employee will also be a matriculated
student of the University of Edinburgh.
The University aims to ensure there are sufficient and meaningful employment opportunities for current
UoE students. Recently qualified PhD students wishing to pursue a career in academia should be
encouraged to seek a post-doc fellowship or similar opportunity. Managers should contact their local
College or Support Group HR team where they wish to extend the employment of an employee
contracted on a Student Experience contract.
A manager wishes hourly paid
employees to attend a training and
development session and is not sure
whether this should be paid.
If there is a requirement for an hourly paid employee to undertake training and development (including
an employee induction) then this should be paid at the employee’s hourly rate. Attendance at training
and development events (as with all employees) should be agreed with the manager in advance. As with
any employee, the amount of paid training and development should usually be proportionate and
directly relevant to the individual’s post. There may be circumstances where a manager mandates all
employees undertake training considered to be of particular importance regardless of contract size e.g.
equality training.
An employee requires access to
resources in the course of their
employment.
All employees should be provided with access to the resources required to carry out their job. This
would include access to office resources if these are required and the appropriate contact person to
assist them with arrangements. Where it is not possible to provide access to all the resources required
e.g. specialist materials, with prior agreement the employee may purchase these and claim for this
expenditure2 in accordance with University policy.
A manager wishes to review whether an
hourly paid contract is most appropriate.
Contact your local College or Support Group HR team. As a general indicator where average annual
hours worked equate to a day or more per week over a number of years, e.g. 300 plus hours per annum
excluding holiday hours, and have a degree of regularity/do not fluctuate greatly (or are not expected to)
then an alternative type of contract may be more appropriate.
A manager wishes a tutor to write and
deliver a new lecture.
Managers should ensure that work offered is appropriate to the employee’s job description and grade.
Grade Profiles
Other Relevant Guidance and Documentation
Those who are responsible for the overall management or administration of hourly paid employees in your School or Department should normally be
contacted in the first instance in relation to queries about or from hourly paid employees. Your local College or Support Group HR team can also be
contacted.
In addition to the guidance above and any local School or Department guidance other sources of information can be found as follows:
Code of Practice on Tutoring and Demonstrating
A-Z of HR Policies
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Staff Expenses